Page 9 - DMEA Week 20 2021

DMEA FUELS DMEA

Sudan hopes ADNOC will ensure

adequate petroleum product supplies

MEA ABU Dhabi National Oil Co. (ADNOC) of the of Omar el-Bashir, the country’s long-time
UAE has reportedly agreed to ensure that Sudan president.
has an adequate supply of petroleum products. Shortages of cooking gas (LPG) and motor
Khalid Omer Yousif, Sudan’s minister of cab- fuel are common and have sparked a number
inet affairs, told Reuters last week that ADNOC of protests and street demonstrations. Power
had offered to sign a contract with Khartoum on outages are also widespread, largely because the
very favourable terms. country does not have enough residual fuel oil to
He did not divulge any details of the deal keep thermal power plants (TPPs) in operation.
but stressed that the parties were in talks on an Supply problems have become increasingly
arrangement that would allow Sudan’s govern- common since 2011. In that year, Khartoum lost
ment to cover domestic fuel demand in full. control of the fields that had accounted for most
Yousif went on to say that the two sides of the country’s crude output as a result of South
intended to discuss the matter further. Specifi- Sudan gaining independence.
cally, he said that a delegation from the Sudanese It has managed to make arrangements with
Energy Ministry was due to travel to the UAE Juba for the continuation of oil shipments
in about a week to settle the details of a supply through the existing pipelines that lead to
agreement. Sudan’s refineries and export terminals on the
As of press time, ADNOC had not com- Red Sea, but deliveries have become less reliable.
mented on the matter. Additionally, the condition of the pipeline
Khartoum has been struggling to meet fuel network has deteriorated, partly because Suda-
demand since mid-2019, when a transitional nese authorities are not earning as much foreign
government took power following the ouster currency from oil production and exports.™

PIPELINES

Sasol to sell 30% stake in ROMPCO

AFRICA SOUTH Africa’s Sasol has arranged to sell part ROMPCO’s other shareholders – Companhia
of its stake in the Republic of Mozambique Pipe- Mocambiçana de Gasoduto (CMG), with 25%,
line Co. (ROMPCO) to a group of South African and South African Gas Development Co. (SOC)
investors. Limited, also known as iGas, with 25%. Nor will
In a statement, Sasol said that its Sasol South it have an impact on SSA’s obligation to operate
Africa (SSA) subsidiary had signed a sale and and maintain the Mozambique-South Africa
purchase agreement (SPA) with a consortium pipeline under an existing commercial agree-
set up by Reatile Group, a black-owned invest- ment, as this arrangement is “independent of
ment firm, and the IDEAS Fund, a domestic the proposed transaction,” Sasol said.
infrastructure fund managed by African Infra- Instead, it said, SSA will continue to use
structure Investment Managers (AIIM). The ROMPCO to pump gas from two Mozambican
agreement provides for SSA to reduce its stake fields, Pande and Temane, to Secunda, per the
in ROMPCO, the owner of an 865-km natural terms of its previous agreements. Gas transport
gas pipeline connecting Mozambique and South tariffs will not be affected by the sale, as they have
Africa, from 50% to 30%. already been approved by the National Energy
Paul Victor, the group CFO for Sasol, said that Regulator of South Africa (NERSA), it added.
the consortium had agreed to pay ZAR4.145bn For his part, Victor stressed that SSA
(about $293mn) for the 30% stake in ROMPCO. remained committed to its projects in Mozam-
SSA will also received a deferred payment of bique. The company sees Mozambican gas as an
ZAR1bn (about $70.75mn), assuming that the integral part of its gas strategy, he explained.
group meets certain milestones by June 30, 2024, SSA is selling the stake in ROMPCO within
he added. the framework of its parent company’s efforts to
The SPA is expected to take effect in the sec- sell off assets in order to pay down debts. Sasol
ond half of this year, assuming that the South began exploring its options for the sale last year,
African government approves the planned sale in response to creditors’ concerns about its deci-
and ROMPCO’s other shareholders do not exer- sion to call off a $2bn initial public offering (IPO)
cise their right to pre-empt the deal. of stock and to borrow more money for a chem-
If the sale goes forward, it will not affect ical project in the US.™

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